"We'll still have ups and downs and in the next week or two, we could retest the lows. But it feels a little better."

David Madden at CMC Markets said there was little confidence in the recovery after bruising losses following a strong February 2 jobs report ignited fears about inflation.

"Dealers don't know which way to turn as uncertainty persists, and a lack of direction is adding to the fear that we could see another sell-off," he said.

Analysts are looking ahead to Wednesday's report on US consumer prices, which could inflame or defuse anxiety that rising inflation will spur the Federal Reserve to hasten interest rate hikes.

"The market is trying to find a positive equilibrium, and if we can get through this week's critical US (inflation data) relatively unscathed, then it would most certainly look as if last week was little more than a corrective episode rather than the commencement of a bear market," said Stephen Innes, head of Asia-Pacific trading at Oanda trading group.

On currency markets, the dollar continued to struggle against the yen, with investors seeking solace in the haven Japanese unit. The pound and euro also were stronger against the greenback.